{"data":{"id":"us-ky/krs-355.9-312","jurisdiction":"us-ky","citation":"KRS 355.9-312","heading":"Perfection of security interests in chattel paper, controllable accounts,","body":"controllable electronic records, controllable payment intangibles, deposit\naccounts, negotiable documents, goods covered by documents, instruments,\ninvestment property, l etter-of-credit rights, and money -- Perfection by\npermissive filing -- Temporary perfection without filing or transfer of\npossession.\n(1) A security interest in chattel paper, controllable accounts, controllable electronic\nrecords, controllabl e payment intangibles, instruments, investment property, or\nnegotiable documents may be perfected by filing.\n(2) Except as otherwise provided in KRS 355.9-315(3) and (4) for proceeds:\n(a) A security interest in a deposit account may be perfected only by co ntrol\nunder KRS 355.9-314;\n(b) And except as otherwise provided in KRS 355.9 -308(4), a security interest in\na letter -of-credit right may be perfected only by control under KRS 355.9 -\n314;\n(c) A security interest in tangible money may be perfected only by th e secured\nparty's taking possession under KRS 355.9-313; and\n(d) A security interest in electronic money may be perfected only by control\nunder KRS 355.9-314.\n(3) While goods are in the possession of a bailee that has issued a negotiable document\ncovering the goods:\n(a) A security interest in the goods may be perfected by perfecting a security\ninterest in the document; and\n(b) A security interest perfected in the document has priority over any security\ninterest that becomes perfected in the goods by another  method during that\ntime.\n(4) While goods are in the possession of a bailee that has issued a nonnegotiable\ndocument covering the goods, a security interest in the goods may be perfected by:\n(a) Issuance of a document in the name of the secured party;\n(b) The bailee's receipt of notification of the secured party's interest; or\n(c) Filing as to the goods.\n(5) A security interest in certificated securities, negotiable documents, or instruments is\nperfected without filing or the taking of possession or control for a period of twenty\n(20) days from the time it attaches to the extent that it arises for new value given\nunder a signed security agreement.\n(6) A perfected security interest in a negotiable d ocument or goods in possession of a\nbailee, other than one that has issued a negotiable document for the goods, remains\nperfected for twenty (20) days without filing if the secured party makes available to\nthe debtor the goods or documents representing the goods for the purpose of:\n(a) Ultimate sale or exchange; or\n(b) Loading, unloading, storing, shipping, transshipping, manufacturing,\nprocessing, or otherwise dealing with them in a manner preliminary to their\nsale or exchange.\n(7) A perfected security int erest in a certificated security or instrument remains\nperfected for twenty (20) days without filing if the secured party delivers the\nsecurity certificate or instrument to the debtor for the purpose of:\n(a) Ultimate sale or exchange; or\n(b) Presentation, collection, enforcement, renewal, or registration of transfer.\n(8) After the twenty (20) day period specified in subsection (5), (6), or (7) of this\nsection expires, perfection depends upon compliance with this article.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55686","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"c3a430a1173b8ab98459fc3538da59f96c6d6b8273a9f722bdf7e2631df103c8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-311","next":"us-ky/krs-355.9-313"},"notice":"GroundRules: Original legal text. Not legal advice."}